Canadian Dollar and Mexican Peso Slump to One-Month Lows as US Tariffs Hit.
The Canadian dollar and Mexican peso fell to their lowest levels in a month on Tuesday as trade war fears became a reality after U.S. President Donald Trump followed through on his tariff threats against Canada, Mexico, and China. Trump's new 25% tariffs on goods from Mexico and Canada took effect, along with a doubling of duties on Chinese goods to 20%, at 12:01 a.m. EST (0501 GMT). The tariffs have sparked concerns about the impact on the North American economy and led to a rally in U.S. Treasuries.
- This escalation of trade tensions highlights the vulnerability of global supply chains, particularly those involving closely integrated economies like Canada, Mexico, and the United States.
- How will the ongoing uncertainty surrounding Trump's tariff policies and their effects on international trade be reflected in the future value of currencies like the Canadian dollar and Mexican peso?